Lots of talk about P&L, balance sheet, and stock price, but nothing on sales outlook. Specifically, does anyone know what Multitest's share of the handler market is, or what EC's share of the fixture market is? Or what has been happening to these shares lately? LTXC's management knows - and Dover's management surely knows. Does anybody care?
No sympathy for LTXC holders. This was a disaster waiting to happen, and the stock had no business at $6. A small bounce may occur, but that would be an opportunity to sell. As for "leading edge technology," that's hilarious.
The numbers (EPS, revenue) just aren't there. Advantest didn't want LTXC, for good reason. Only hope is an acquisition, which is usually a bad reason to buy a stock. ATE, TER dominate this market.
"LTXC share holders must ensure..." How exactly do they do that, when more than 80% of the stock is owned by institutions, including Fidelity Division Growth Fund, which owns more than 1.6M shares of a stock that never has and never will pay a dividend? Bottom line: The individual stockholder should get out, instead of #$%$.
The most interesting semi test stock is ATE, which sells at a lower enterprise value than TER even though it has a higher market share and its customers love its products. The main battle is between TER and ATE, and right now ATE is winning - even though its stock is in the dumps right now.
Predictability in technology is impossible. If sales and earnings were predictable, everyone would buy the same stocks, and there would be no surprises. Of the three leaders in ATE, TER is by far the most consistently profitable, but that's not saying much. People who are looking for predictability should invest in Wal-Mart or P&G.